South Korea’s Currency Takes a Hit as President Declares State of Emergency
The South Korean won plummeted against the US dollar on Tuesday, hitting a two-year low, after President Yoon Suk Yeol announced a state of emergency. The dollar surged 1.4% against the won, sparking a wave of market volatility.
Market Reaction
The MSCI South Korea ETF tumbled over 4%, reaching a new 52-week low, while the Franklin FTSE in South Korea slipped 3%. US-listed shares of Korean companies also felt the impact, with Coupang and Posco Holdings plummeting around 6%, and KT Corp and KB Financial dropping 3% and 1%, respectively.
President Yoon’s Announcement
In an unexpected televised address, President Yoon accused opposition lawmakers of hijacking the parliament, plunging the country into a political crisis. The exact implications of the emergency measure on the country’s governance and democracy remain unclear.
Yoon’s Presidency
Since taking office in May 2022, President Yoon has taken a hardline stance on North Korea, while seeking to strengthen ties with the US and Japan. His presidency has been marked by a narrow election victory, with a margin of just 0.73%.
Uncertainty Ahead
As the situation unfolds, investors and citizens alike are left wondering how this state of emergency will shape the country’s future. With the won still reeling, all eyes are on South Korea’s leadership to provide clarity on the path forward.
Stay Informed
This is a developing story, and we will continue to provide updates as more information becomes available.
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